During November 2014, Hall Company purchased two identical inventory items. The item purchased first cost $12.00, and the item purchased second cost $15.00. Hall sold one of the inventory items for $20.00. Based on this information
A) the amount of gross margin would be $5.00 if Hall uses the weighted average cost flow method.
B) the amount of cost of goods sold would be $12.00 if Hall uses the weighted average cost flow method.
C) the amount of gross margin will be $5.00 if Hall uses the FIFO cost flow method.
D) the amount of ending inventory will be $12.00 if Hall uses the LIFO cost flow method.

Question

Quizplus · Accepted Answer

The Answer of During November 2014, Hall Company purchased two identical inventory items. The item purchased first cost $12.00, and the item purchased second cost $15.00. Hall sold one of the inventory items for $20.00. Based on this information
A) the amount of gross margin would be $5.00 if Hall uses the weighted average cost flow method.
B) the amount of cost of goods sold would be $12.00 if Hall uses the weighted average cost flow method.
C) the amount of gross margin will be $5.00 if Hall uses the FIFO cost flow method.
D) the amount of ending inventory will be $12.00 if Hall uses the LIFO cost flow method.

During November 2014, Hall Company Purchased Two Identical Inventory Items